Council house rents in Fife will increase by 6.6% for 2012/13, it has emerged.
Councillors will be asked to back the rise at a special meeting of Fife Council on Thursday, when the budget for the coming financial year will be set.
If the plans are given the green light, it means that the typical rent for a two-bedroom four-in-a-block flat will go up by around £3.60 per week although Fife Council stresses its average weekly rent will still be lower than other registered social landlords in the region and the Scottish average.
A joint report by Derek Muir, head of housing, and Keith O’Donnell, head of financial services, will outline the options available to councillors and will recommend an increase of RPI plus 1%.
”A rent increase of 6.6% would enable the council to deliver all elements of the proposed budget as presented, including increased investment to enable the council to meet its statutory requirement to meet the Scottish Housing Quality Standard by 2015 in addition to wider investment and related service delivery objectives,” it states.
”Failure to adhere to the rent policy could result in a significant reduction, or possible eradication of headroom capacity in future years.”
Rents and service charges for garage sites, launderettes, caretaking, heating, garden care and hostels will also rise by the same percentage, although rents for lockup garages are expected to remain at their current level for the fourth successive year.
Councillors will hear that an alternative option, to support a lower than RPI increase for 2012/13, could be introduced, although they will be told that option would carry an increased risk of the council not meeting its policy objectives.
An increase above RPI plus 1% would also have to be imposed in 2013/14 and 2014/15 if that action was taken.
Tenants have been surveyed on the proposals and 43% of those who responded were in favour of a lower increase this year whereby the shortfall could be made up over the following two years, with 30.9% backing the RPI plus 1% scenario.
A total of 13.5% supported an increase of more than RPI plus one, with 12.6% supporting a less than RPI plus one increase with no future adjustment to compensate.